- Michelin‘s total segment operating income for the fiscal year is €3.38 billion, higher than the estimated €3.34 billion, despite a 5.4% decline year-on-year.
- Automotive operating income fell by 2.6% year-on-year to €1.92 billion, surpassing the estimate of €1.88 billion.
- Road transportation operating income increased by 26% year-on-year to €597 million, slightly below the estimate of €597.5 million.
- Specialty businesses operating income decreased by 24% year-on-year to €864 million, slightly below the estimate of €870.8 million.
- The segment operating margin was at 12.4%, slightly lower than the previous year’s 12.6%, but above the estimate of 12.3%.
- Automotive operating margin was recorded at 13.1%, slightly lower than the previous year and below the estimate of 13.4%.
- Road transportation operating margin increased significantly to 9% from 6.8% year-on-year, exceeding the estimate of 8.97%.
- Specialty business operating margin dropped to 14.6% compared to the previous year’s 17.3%, surpassing the estimate of 13.4%.
- Total revenue decreased by 4.1% year-on-year to €27.19 billion, slightly above the estimated €27.16 billion.
- Automotive revenue declined by 1.3% year-on-year to €14.67 billion, higher than the estimated €14.08 billion.
- Road transportation revenue dropped by 4.9% year-on-year to €6.60 billion, close to the estimate of €6.67 billion.
- Specialty business revenue decreased by 9.4% year-on-year to €5.93 billion, below the estimated €6.38 billion.
- Segment EBITDA fell by 2.3% year-on-year to €5.36 billion, surpassing the estimate of €5.27 billion.
- Net income is recorded at €1.89 billion, a 4.7% decrease year-on-year.
- Dividend per share is €1.38, below the estimated €1.47.
- Adjusted free cash flow is reported at €2.23 billion, declining by 26% year-on-year.
- Michelin forecasts adjusted free cash flow above €1.7 billion for the next year.
- The company aims to improve its full-year segment operating income at constant exchange rates.
- Tire markets are expected to show slight growth in 2025, with a decline in the first half due to lower original equipment demand.
- Michelin is focused on maintaining its 2026 objectives shared during the 2024 Capital Markets Day.
- The current market analysis of Michelin‘s stock includes 12 buys, 6 holds, and 3 sells.
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A look at Michelin Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Michelin, the renowned manufacturer of auto parts including tires, is poised for a steady long-term outlook according to Smartkarma Smart Scores. With a strong Dividend score of 4, investors can expect reliable returns in the form of dividends. The Growth and Resilience scores, both at 4, indicate a promising future for Michelin in terms of expansion and ability to withstand market challenges. While the Value and Momentum scores stand at 3, signaling decent overall performance in these areas, the higher ratings in Dividend, Growth, and Resilience suggest a favorable trajectory for Michelin as it continues to cater to clients globally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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